By Malvika Gurung
Investing.com -- In a grim development on Monday, shares of India’s second-largest IT services provider Infosys (NS:INFY) crashed 15% to hit a new 52-week low of Rs 1,185.3 apiece following its March 2023 quarterly earnings post market hours on Thursday last week.
The IT behemoth reported lower-than-expected topline and bottomline readings for the quarter ended March 31, 2023, while also failing to meet its revenue growth guidance target for the financial year 2022-23.
Infosys’ consolidated net profit rose 7.8% YoY to Rs 6,128 crore in the March quarter, and consolidated revenue climbed 16% YoY to Rs 32,276 crore in the period, both figures failing to meet the Street’s targets.
Sequentially, Infosys’ net profit declined 7% in the March quarter, and the operating margin contracted by 50 basis points to 21%.
In the financial year 2022-23, the software major’s revenue in constant currency terms grew 15.4%, which came in below the company’s own guided range of 16-16.5%
Further, the company’s FY24 guidance for revenue is lower than the Street’s estimate, as Infosys expects its yearly sales to make a soft growth by a mere 4-7% in constant currency terms, while the operating margin is forecasted to fall in the 20-22% range.
Many brokerages have cut their target price and downgraded ratings on Infosys following the IT giant’s disappointing Q4 FY23 results last week.